This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
If anyone has read the book Technical Analysis of Stock Trends by Edwards and Magee, you will know to what I am referring. If not, you may think I am nuts. But you would be the nutty one for not having it on your bookshelf. QQQQ had formed what looked to be a perfect head and shoulders bottom on the intraday chart. 
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
February 10th, 2007 at 7:27 am
what you see as a H&S “bottom” TAZ trader saw as a diamond top pattern. it is not about what the pattern looks like, it is about the breakout/breakdown that follows.
February 10th, 2007 at 9:28 am
Right you are. Also, because there was resistance overhead, the head and shoulder pattern was prone to failure.